Knr Constructions Limited · NSE:KNRCON
Knr Constructions — Investor Presentation (February 2019)
53 slides from Knr Constructions's investor presentation, Feb 11, 2019
Slide 1: Exchange filing cover letter
KNR Constructions Limited. Date: 11 th February 2019 Ref: KNRCLjSDj2019j 36 & 37 To To Dept. of Corporate Services, National Stock Exchange of India Limited BSE Limited "Exchange Plaza", -. P J Towers, Dalal Street, Bandra Kurla Complex, Fort, MUMBAI - 4:00001 Bandra (E), MUMBAI - 400051 BSE Code: 5
Slide 2: Investor Presentation February 2019
FEBRUARY 2019 KNR Constructions Limited Investor Presentation
Slide 3: Disclaimer
2 KNR Constructions Limited Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by KNR Constructions Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purcha
Slide 4: Key Highlights & Result Update
3 KNR Constructions Limited KEY HIGHLIGHTS & RESULT UPDATE
Slide 5: Standalone Financial Highlights
4 KNR Constructions Limited Standalone Financial Highlights Revenue (Rs. Million)* EBITDA (Rs. Million) PAT (Rs. Million) +4% -8% -21% 4,331 4,489 984 657 901 521 Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 +9% +7% -11% 14,215 2,831 1,924 13,073 2,654 1,711 9M FY18 9M FY19 9M FY18 9M FY19 9M FY1
Slide 6: Standalone Financial Results
5 KNR Constructions Limited Standalone Financial Results Rs. Million Q3 FY19 Q3 FY18 YoY 9M FY19 9M FY18 YoY Net Sales 4,459.9 4,276.8 14,074.2 12,823.5 Other Operating Income * 29.0 55.1 141.2 249.3 Total Revenue 4,488.9 4,331.9 4% 14,215.4 13,072.8 9% Operating Expenses 2,803.6 2,781.9 9,018.8 8,7
Slide 7: Standalone Balance Sheet
6 KNR Constructions Limited Standalone Balance Sheet ASSETS (Rs. Millions) Sept-18 Mar-18 EQUITY & LIABILITIES (Rs. Millions) Sept-18 Mar-18 Non-Current Assets Equity Property, plant and equipment 3,421.0 3,313.7 Equity Share capital 281.2 281.2 Capital work-in-progress 6.0 0.2 Other equity 12,413.0
Slide 8: Key Updates
7 KNR Constructions Limited Key Updates Received Appointed Date for KNR Tirumala Infra Private Limited (HAM project) on 4th January 2019 Received Financial closure for the following projects ▪ KNR Srirangam Infra Private Limited ▪ KNR Chidambaram Infra Private Limited ▪ KNR Shankarampet Projects Pri
Slide 9: Business Overview
8 KNR Constructions Limited BUSINESS OVERVIEW
Slide 10: Business Overview
9 KNR Constructions Limited Business Overview One of the leading companies providing Engineering, Procurement and Construction (EPC) services Major Projects in Roads & Highways – one of the fast growing sector Established presence in Irrigation and Urban Water Infrastructure Management VISION 20 yea
Slide 11: Transformation
10 KNR Constructions Limited Transformation • Received the biggest work with a order value of Rs. 8,250 • Crossed Revenue of Rs. 1995 • Incorporated & 2010 mn from Sadbhav Engineering 2016 10,000 mn on Standalone Commenced EPC Business Ltd for construction of Bijapur Basis Hungund Road project • Bag
Slide 12: Management
11 KNR Constructions Limited Management Mr. K. Narasimha Reddy – Founder Promoter & Managing Director Over 50 years of experience in the Highway sector Started career in 1968 and engaged in the business of undertaking civil and mechanical contracts Extensive knowledge and experience in multi project
Slide 13: Supported by Professional Team
12 KNR Constructions Limited Supported by Professional Team Mr. T.L. Verma Mr. D. Tirupathi Reddy (Vice President - Projects) (GM – Projects) A Bachelor of Engineering (BE) from MITS Gwalior (MP) with Over 24 years of rich experience in various fields of Civil Over 35 years of total experience with
Slide 14: Key Business Strengths
13 KNR Constructions Limited KEY BUSINESS STRENGTHS
Slide 15: Significant Experience and Strong Track Record in Timely Execution
1 SIGNIFICANT EXPERIENCE AND STRONG TRACK RECORD IN TIMELY EXECUTION OF PROJECTS KNR Constructions Limited 14 Project Execution Top management’s active involvement at all stages of Project execution o Selection of Major Raw Material o Selection of construction Camp location Faster Decision making to
Slide 16: Pan India Project Execution Capability
15 KNR Constructions Limited Pan India Project Execution* Capability Bihar Arunachal Pradesh No of Projects 1 No of Projects 1 Uttar Pradesh Value of Projects Rs. 1,411 mn Value of Projects Rs. 920 mn No of Projects 4 Value of Projects Rs. 1,704 mn Assam No of Projects 2 Madhya Pradesh Value of Proj
Slide 17: Project Execution Highlights
16 KNR Constructions Limited Project Execution Highlights Cement Concrete Road • Completed Widening to 4/6 lanes and Strengthening of Existing two lane carriageway of NH – 5 in the State of Orissa for a length of 56.0 Kms with total contract value of work is Rs 2,310 mn • Existing road was widened &
Slide 18: World Class Construction Equipment
2 WORLD CLASS CONSTRUCTION EQUIPMENTS USE OF RIGHTRIGHT TOOLS FOR WORK KNR Constructions Limited 17 In-house Construction Equipment Sl. No. Name Of The Machinery Qty 1 Tippers & Tankers 901 2 Excavators 275 3 Compactors 99 4 Concrete Mixers And Pumps 117 5 Loaders 60 6 Pavers 36 7 Crushers 24 8 Grad
Slide 19: In-house Team of 1,325 Qualified Employees
3 IN-HOUSE TEAM OF 1,325 QUALIFIED AND EXPERIENCED EMPLOYEES LED BY PROVEN MANAGEMENT TEAM KNR Constructions Limited 18 In-house Execution Team 5% 35% 34% Project Engineering Site Supervision Site Engineers Equipment Operators Admin & Office Staff 8% 18%
Slide 20: Host of Marquee Clients
4 HOST OF MARQUE CLIENTS KNR Constructions Limited 19 Reputed Clientele National Andhra Pradesh Ministry of Hyderabad Karnataka Karnataka Road Highways Road Development Road Transport Growth State Highway Development Authority of Corporation & Highways Corridor Improvement Corporation India (NHAI) (
Slide 21: BOT Portfolio
20 KNR Constructions Limited BOT PORTFOLIO
Slide 22: BOT Portfolio – Annuity Projects
21 KNR Constructions Limited BOT Portfolio – Annuity Projects Particulars Patel KNR Infrastructures limited (PKIL) Patel KNR Heavy Infrastructures Limited (PKHIL) Stake 40% 40% Project Details Project Type Road-Annuity Road-Annuity State Karnataka Telangana JV Partner PEL PEIL Client NHAI NHAI Lengt
Slide 23: BOT Portfolio – Toll Projects
22 KNR Constructions Limited BOT Portfolio – Toll Projects Particulars KNR Walayar Tollways Private Limited KNR Muzaffarpur Barauni Tollway Private Limited Stake 100% 51% Project Details Project Type Road-Toll Road-Toll State Kerala Bihar JV Partner - JKM Infra Project Ltd Client NHAI NHAI No of Lan
Slide 24: Walayar–Vadakkancherry Project
23 KNR Constructions Limited Walayar –Vadakkancherry Project KNR Walayar Tollways Private Limited is a wholly owned subsidiary of KNR Constructions Limited, incorporated as an SPV for execution of Walayar Road Project Completion Certificate for 100% of Project length has been issued for the project
Slide 25: Muzaffarpur - Barauni Project
24 KNR Constructions Limited Muzaffarpur - Barauni Project KNR Muzaffarpur Barauni Tollway Private Limited is a Step down subsidiary of KNR Constructions Limited, incorporated as an SPV for execution of Muzaffarpur -Barauni Road project on BOT (Toll) basis Provisional Completion Certificate for 75%
Slide 26: HAM Portfolio
25 KNR Constructions Limited HAM Portfolio Particulars Trichy to Kallagam Meensurutti to Chidambaram Chittor to Mallavaram Ramsanpalle to Mangloor Magadi to Somwarpeth KNR Srirangam Infra Private KNR Chidambaram Infra Private KNR Tirumala Infra Private KNR Shankarampet Projects KNR Somwarpeth Infra
Slide 27: Details of SPA with Cube
26 KNR Constructions Limited Details of SPA with Cube^ Particulars Total Equity Equity Investment – Equity Investment – Consideration for Investment Cube’s Share (49%) KNR’s Share (51%) KNR’s 51% stake (Rs. mn) (Rs. mn) (Rs. mn) (Rs. mn)* KNR Sriranagm Infra Pvt Ltd 962.3 471.5 490.8 736.1 1.5 times
Slide 28: Salient Features of the Deal
27 KNR Constructions Limited Salient Features of the Deal Entered into Share Purchase Agreement with Cube for the above mentioned 3 SPV's (100% wholly owned subsidiary the Company) The Company in a phased manner will sell to Cube its entire shareholding in the SPV Sale is subject to the shareholding
Slide 29: Order Book & Business Strategy
28 KNR Constructions Limited ORDER BOOK & BUSINESS STRATEGY
Slide 30: Order-book Break-up
29 KNR Constructions Limited Order-book Break-up Central Govt. 63% Captive 0% Others Other 0% 100% State Govt. 37% Captive State Govt. Central Govt. Others ORDER BOOK OF RS. 15,408 MILLION AS ON 31ST DECEMBER 2018
Slide 31: Order-book Highlights
30 KNR Constructions Limited Order-book Highlights Roads - Non Irrigation Key Projects Rs. Mn Captive 21% 79% Others Hubli – Hospet Section of NH - 63 4,637 0% Thiruvananthapuram Bypass 1,741 State Road from Gobuk – Mariyang – Sijhon Nallah in 1,740 Arunachal Pradesh Dindigul-Bangalore Road (Pollach
Slide 32: HAM Projects Won
31 KNR Constructions Limited HAM Projects Won 39,750^ 55,158 Bid Project Cost Rs. million HAM Order Wins (Rs. mn) 4 Laning of Trichy to Kallagam Section of NH-227 under Bhartmala 10,206.0 Pariyojana (Residual Project under NHDP) in the state of Tamil Nadu 2 Laning with Paved Shoulder of Meensurutti
Slide 33: Order-book: State-wise
32 KNR Constructions Limited Order-book: State-wise Arunachal Pradesh No of Projects 1 Balance Value Rs. 1,740 mn Karnataka No of Projects 9 Balance Value Rs. 5,510 mn AP & Telangana No of Projects 6 Balance Value Rs. 3,255 mn Kerala No of Projects 3 Balance Value Rs. 1,758 mn Tamil Nadu No of Proje
Slide 34: Business Strategy
33 KNR Constructions Limited Business Strategy Focus on Projects involving Higher degree of engineering skills Focus on securing Continuously explores EPC contracts from growth opportunities reputed Clients and by forming strategic Concessionaire Joint Ventures (JVs) Capitalise on Execute all the Op
Slide 35: Financial Highlights
34 KNR Constructions Limited FINANCIAL HIGHLIGHTS
Slide 36: Standalone Financial Results
35 KNR Constructions Limited Standalone Financial Results Rs. Million FY18 FY17 YoY Net Sales 18,756.4 15,325.4 Other Operating Income * 560.2 85.1 Total Revenue 19,316.6 15,410.5 25% Operating Expenses 12,854.4 11,145.1 Employees Expenses 721.2 552.4 Other Expenditure 1,879.7 1,417.3 EBITDA 3,861.3
Slide 37: Standalone Balance Sheet
36 KNR Constructions Limited Standalone Balance Sheet ASSETS (Rs. Millions) Mar-18 Mar-17 EQUITY & LIABILITIES (Rs. Millions) Mar-18 Mar-17 Non-Current Assets Equity Property, plant and equipment 3,313.7 2,606.9 Equity Share capital 281.2 281.2 Capital work-in-progress 0.2 15.3 Other equity 11,297.1
Slide 38: Consolidated Financial Results
37 KNR Constructions Limited Consolidated Financial Results Rs. Million FY18 FY17 YoY Total Revenue 20,696.0 16,795.9 23% Operating Expenses 13,390.5 11,893 Employees Expenses 739.6 586 Other Expenditure 2,081.1 1,678 EBITDA 4,484.76 2,639.62 70% EBITDA margin 21.7% 15.7% Other Income 557.9 329.6 De
Slide 39: Consolidated Balance Sheet
38 KNR Constructions Limited Consolidated Balance Sheet ASSETS (Rs. Millions) Mar-18 Mar-17 EQUITY & LIABILITIES (Rs. Millions) Mar-18 Mar-17 Non-current assets Equity Property, plant and equipment 3,336.9 2,630.9 Equity Share capital 281.2 281.2 Capital work-in-progress 11.5 26.6 Instruments Entire
Slide 40: Standalone Financial Highlights
39 KNR Constructions Limited Standalone Financial Highlights* Financial Year 2010 2011 2012 2013 2014 2015 2016^ 2017^ 2018^ Rs. 7,125 Rs. 7,930 Rs. 7,505 Rs. 6,921 Rs. 8,348 Rs. 8,761 Rs. 9,025 Rs. 15,411 Rs. 19,317 Turnover $118.6 $132.0 $125.0 $115.2 $139.0 $140.0 $136.1 $238.3 $296.9 Rs. 1,121 R
Slide 41: Standalone Financial Highlights
40 KNR Constructions Limited Standalone Financial Highlights Revenue & EBITDA (Margin %) EBITDA 15.7% 17.1% 17.8% 16.8% 15.1% 14.4% 16.9% 14.9% 20.0% Margin (%) 19,317 15,411 7,930 8,348 8,761 9,026 7,125 7,505 6,921 EBITDA 3,861 1,121 1,356 1,338 1,164 1,258 1,261 1,529 2,296 Revenue 2010 2011 2012
Slide 42: Standalone Net Working Capital Days
41 KNR Constructions Limited Standalone Net Working Capital Days 79 69 53 52 48 52 40 43 41 30 25 26 28 26 23 18 20 19 18 16 16 15 15 15 17 16 13 14 12 14 14 12 12 7 98 10 66 45 64 51 74 53 39 45 28 20 11 20 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Dec-18 Inventor
Slide 43: Shareholding Pattern as on 31st December 2018
42 KNR Constructions Limited Shareholding Pattern as on 31st December 2018 12.98% Shareholders Holding more than 1% of the Equity % to Equity (Other than Promoters) HDFC Mutual Fund 6.40% ICICI Mutual Fund 7.05% 28.69% 55.38% DSP Blackrock Mutual Fund 6.15% L&T Mutual Fund 2.22% Tata Mutual Fund 1.7
Slide 44: Other Businesses
43 KNR Constructions Limited Other Businesses Strong growth opportunity in development of Agricultural Infrastructure Execution of Irrigation & Water Supply Projects with Joint Venture Partners Executed 3 Projects in Telangana & 1 Project in Bihar Executed an Urban Water Infrastructure project in th
Slide 45: Project Gallery
44 KNR Constructions Limited PROJECT GALLERY
Slide 46: Completed Projects
45 KNR Constructions Limited Completed Projects Eturunagaram Bridge over river KNR Walayar Toll Road Godavari
Slide 47: Completed Projects
46 KNR Constructions Limited Completed Projects Walayar Toll plaza Muzaffarpur-Barauni Road Project
Slide 48: Under-Construction Projects
47 KNR Constructions Limited Under-Construction Projects Coimbatore Flyover Coimbatore Flyover
Slide 49: Under-Construction Projects
46 KNR Constructions Limited Under-Construction Projects Flyover in Madurai - Salem Flyover Ramanathpuram Section
Slide 50: Equipments
47 KNR Constructions Limited Equipments Salem work yard Tippers on site
Slide 51: Irrigation Projects
48 KNR Constructions Limited Irrigation Projects Palamurru lift Irrigation
Slide 52: Irrigation Projects
49 KNR Constructions Limited Irrigation Projects Palamurru lift Irrigation
Slide 53: For further information, please contact
50 KNR Constructions Limited For further information, please contact Company : Investor Relations Advisors : KNR Constructions Ltd. CIN: L74210TG1995PLC130199 Strategic Growth Advisors Pvt. Ltd. Mr. K. Venkata Ram Rao CIN: U74140MH2010PTC204285 (GM - Finance & Accounts) Mr. Jigar Kavaiya / Mr. Rohan
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